An Oil Gusher?

• Posted by Greg Harmon
• on June 12th, 2014

West Texas Intermediate Crude Oil ($CL_F, $USO) has been moving in a tightening triangle against long term resistance around 105. Since October it has moved through a series of patterns and gotten stronger every time. The first was a ‘W’ pattern that made a double bottom at 91-92 and then retraced half way following its completion. The next was a Bat harmonic that retraced over 78.6% of the Bat before reversing. That low at 97 in March also made the second point of an ascending triangle the top at 105. It is now back at 105 for the 4th time

and looking strong. A break over 105 will carry a Measured Move higher to 113 with only minor prior price history at 108 and 111 along the way. With all the congestion and coiling in this range a move higher could happen quickly as resistance exhausts itself. Are you ready for it?

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades.

____________________________________________________________________________________________________

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through May 2014 Expiry and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus